Answer:
$650
Explanation:
Guaranteed Residual Value = FV = $1,000
Interest rate = r = 9% = 0.09
Number of years = n = 5 years
Using Following formula we can calculate today's worth of the engine.
Residual value after 5 years = Today's value x ( 1 + rate of interest )^number of years
FV = PV x ( 1 + r )^n
$1,000 = PV x ( 1 + 0.09 )^5
PV = $1,000 / ( 1.09 )^5
PV = $649.93
PV = $650 (rounded off to the nearest whole number)
Answer:
Journal entry recorded by Harrington for this allowance:
Revenue $ 450 (debit)
Account Receivable / Cash $450 (credit)
Explanation:
Recording the Sale
When customer purchased bench from Harrington Stores for $1,250 the journal entry is shown as:
Account Receivable/Cash $1250(debit)
Revenue $ 1250 (credit)
This Journal recognises an Income - Revenue and an Asset - Account Receivable when to depict the flow of economic benefits into the entity
Cost of Sale $450 (debit)
Inventory $450(debit)
The above journal records the cost of sale and de-recognises the assets of inventory Bench after the sale is made.
Recording the Allowance
When the allowance is granted economic benefits are flowing out of the entity as a result of <em>decrease</em> in Assets of Cash or Assets of Account Receivable.
We also <em>derecognise </em>the revenue attached to the allowance
Revenue $ 450 (debit)
Account Receivable/Cash $450 (credit)
Answer:
C. the loss of profit from the delayed opening.
Explanation:
The contract was for Restore Inc to resurface the pools at Swim Park by June 1. Restore Inc couldn't deliver by June 1 and finished the job 15 days later, thereby delaying the seasonal opening of Swim Park.
Swim Park can sue for breach of contract and recover the loss of profit from the delayed opening because Restore Inc failed to deliver according to the terms of the contract thereby making Swim Park lose profit.
The money to be paid to Swim Park would be an estimated profit for the 15 days the park should have been in operation.
Answer:
current price of the stock P = $55.084
Explanation:
given data
dividend D1 = $3.25 per share
Dividend growth rate g = 5.1 % = 0.051
Required rate of return r = 11 % = 0.11
solution
We can find the price of the company stock today by using Gordon's Growth Model that is
current price of the stock P = 
..................1
here D1 is dividend and r is rate of return and g is growth rate
so here value in equation 1 we get
current price of the stock P = 
current price of the stock P = $55.084
Answer:
Wyatt
Explanation:
High outcome interpendence is a concept that encourages cooperation between members on a team. It shows that if a team wins all members will benefit, and if the team fails all members will be adversely affected.
In this scenario Wyatt who is a slacker in the team of Nick will stand to gain more.
In a high outcome interpendence scenario Nick will be forced to improve on the performance of Wyatt in order to meet team objectives.
The other average workers will only gain a little from increased cooperation.
